A Russian official predicts that international CBDC payments will become standard within five years.

Central bank digital currencies (CBDCs) are expected to become commonplace for international payments within the next five years, according to Anatoly Aksakov, Chairman of the Russian State Duma’s Financial Markets Committee.

Speaking at the St. Petersburg International Economic Forum (SPIEF), Aksakov noted that while few countries have made significant progress in developing national digital currencies, he is confident that this will change in the near future. He predicted that by the second half of 2025, Russia might begin using the digital ruble for international transactions, although domestic testing will precede this move.

Aksakov emphasized that widespread domestic use, including by legal entities, is crucial before international implementation. He also advocated for testing budget financing with smart contracts as soon as possible.

Russia has been a leader in CBDC development, with the Central Bank of Russia actively working on the digital ruble to modernize the financial system and reduce dependency on traditional banking infrastructure. In October 2020, the Central Bank released a consultation paper on the digital ruble’s potential benefits and risks, and various aspects have since been tested in pilot programs.

This initiative aligns with Russia’s historical pursuit of financial independence, especially in response to Western sanctions. The digital ruble aims to enhance secure and efficient transactions, bypassing traditional systems that may be influenced by international pressures, thus bolstering Russia’s economic sovereignty.

Aksakov also indicated that initial international CBDC transactions could involve China or Belarus. He noted that China, with significant progress on the digital yuan, and technological compatibility with Russia, could be an ideal partner. Belarus, with its strong ties to Russia, is another potential collaborator.